SHSE:688981's Return-on-Tangible-Asset is ranked worse than 57.17% of 1025
companies
in the Semiconductors industry
Industry Median: 2.63
vs SHSE:688981: 1.37
Semiconductor Manufacturing International (SHSE:688981) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Semiconductor Manufacturing International Return-on-Tangible-Asset Related Terms
Semiconductor Manufacturing International Return-on-Tangible-Asset Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Semiconductor Manufacturing International Return-on-Tangible-Asset Chart
Semiconductor Manufacturing International Annual Data
SHSE:688981 vs NVDA, AVGO, MU: Return-on-Tangible-Asset Comparison
For the Semiconductors subindustry, Semiconductor Manufacturing International's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Semiconductor Manufacturing International Return-on-Tangible-Asset vs Semiconductors Industry
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 1.46% mean?
Semiconductor Manufacturing International (SHSE:688981) has a Return-on-Tangible-Asset of 1.46% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Semiconductor Manufacturing International and its competitors. This is 21% below median its historical median of 1.84. Over the past decade, Semiconductor Manufacturing International's Return-on-Tangible-Asset has ranged from 1.02 to 5.12. According to the industry distribution chart, Semiconductor Manufacturing International ranks #586 out of 1025 companies in the Semiconductors industry, placing it in the top 57.2%.
Is Semiconductor Manufacturing International's Return-on-Tangible-Asset too high?
Semiconductor Manufacturing International's current Return-on-Tangible-Asset of 1.46% is 21% below median its 10-year median of 1.84. Over the past 10 years, this metric has ranged from a low of 1.02 to a high of 5.12. The Semiconductors industry median Return-on-Tangible-Asset is 2.63. Semiconductor Manufacturing International's value of 1.46% is 44.5% below this industry median. Based on the distribution chart, Semiconductor Manufacturing International ranks #586 out of 1025 companies in the Semiconductors industry, which is below the industry midpoint. Overall, Semiconductor Manufacturing International has a GF Score™ of 79/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Semiconductor Manufacturing International's Return-on-Tangible-Asset compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Semiconductor Manufacturing International ranks #586 out of 1025 companies for Return-on-Tangible-Asset. This places Semiconductor Manufacturing International in the lower half of its industry. The industry median Return-on-Tangible-Asset is 2.63. Semiconductor Manufacturing International's value of 1.46% is 44.5% below this benchmark. Historically, Semiconductor Manufacturing International's own Return-on-Tangible-Asset has ranged from 1.02 to 5.12 over the past decade. While the company's 10-year median is 1.84 vs. the industry median of 2.63, Semiconductor Manufacturing International has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for a Semiconductors company?
The median Return-on-Tangible-Asset among Semiconductors companies is 2.63, based on 1,025 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Semiconductor Manufacturing International's current Return-on-Tangible-Asset of 1.46% is 44.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Semiconductor Manufacturing International and its competitors. For the Semiconductors industry, the median Return-on-Tangible-Asset is 2.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Semiconductor Manufacturing International's current Return-on-Tangible-Asset is 1.46%, which is 21% below median its own 10-year median of 1.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Semiconductor Manufacturing International stock overvalued right now?
Based on GuruFocus' analysis, Semiconductor Manufacturing International (SHSE:688981) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥75.03, compared to a current price of ¥152.10 — trading 102.7% above its estimated fair value. The current Return-on-Tangible-Asset is 1.46%, which is 21% below median its 10-year median of 1.84 and 44.5% below the Semiconductors industry median of 2.63. Semiconductor Manufacturing International's overall GF Score™ is 79/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Semiconductor Manufacturing International (SHSE:688981), the current Return-on-Tangible-Asset is 1.46% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Semiconductor Manufacturing International (SHSE:688981) Overvalued in 2026?
Based on GuruFocus' analysis, Semiconductor Manufacturing International stock appears to be overvalued.
The current stock price of ¥152.10 is trading 102.7% above its estimated GF Value™ of ¥75.03.
GuruFocus considers Semiconductor Manufacturing International to be Significantly Overvalued.
Key valuation signals for SHSE:688981:
Return-on-Tangible-Asset: 1.46% (21% below median its 10-year median of 1.84)
GF Value™: ¥75.03 vs. price of ¥152.10 (102.7% above fair value)
Industry Position: 44.5% below the Semiconductors median (#586 of 1025)
No single metric tells the full story. See the SHSE:688981 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Semiconductor Manufacturing International Business Description
Founded in 2000, Semiconductor Manufacturing International Corporation is the largest foundry in China and the third-largest globally after TSMC and Samsung Electronics, overtaking GlobalFoundries and United Microelectronics in 2024. The company's headquarters and foundry are in Shanghai, with additional foundries in Beijing, Tianjin, and Shenzhen, and offices in the United States, Europe, Japan, Taiwan, and Hong Kong. Its products are used in artificial intelligence, data centers, automotive, consumer electronics, memory, and "Internet of Things" products. SMIC employs 19,952 people as of Dec. 31, 2025.
79GF Score
Get the complete analysis for SHSE:688981
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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